Thimphu Road Improvement Project (ADB-44240-014)

  • Bhutan
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Sep 29, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 4.26 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 2, 2020

Disclosed by Bank Nov 9, 2016

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Project Description


The project will improve the mobility of residents in the country's capital, Thimphu, by undertaking essential road improvements of urban roads, and the construction of drainage and pedestrian infrastructure. The project will further support the capacity enhancement of Thimphu Thromde officers for undertaking crucial road asset management.


The total number of vehicles in the country has increased rapidly, yielding an average annual growth rate of 11% from 1997 to 2012. Most of this growth occurred in Thimphu where, after slowing briefly during 2012 -2014, the growth rate increased by 5.2% from 2015 to 2016, This is putting significant stress on Thimphu's road infrastructure. The LAP was a rare successful example of a land-pooling scheme in the developing world; however, this planned urbanization caused an unprecedented construction boom that has severely damaged the road infrastructure in several parts of the city, particularly the LAP areas in the south. Thimphu's roads were designed for normal traffic conditions, and the influx of heavy construction vehicles on residential and commercial streets has caused damage that cannot be repaired or restored by routine maintenance. At the same time, a rapid increase in vehicular traffic is creating congestion, which is further aggravated by deteriorating road conditions.

Several sections of the city's roads are riddled with potholes and suffer from waterlogging due to poor drainage. The government has identified road repairs and improvements in Thimphu as its top priority, with road safety and traffic management as its key concerns. Addressing these issues will be crucial to maintain the significant benefits of the LAP's successful implementation and enable this strategy to be widely and continuously replicated in the future. Thus, the government has requested ADB support to prepare a project to address these key issues urgently. The project will ensure sustainable urban development in Thimphu based on the Thimphu Structure Plan and the LAPs.

The project is consistent with the government''s plans and strategies, and with the inclusive social development objective of ADB's country partnership strategy for Bhutan, which aims to improve urban infrastructure and services, upgrade city planning, and strengthen the planning and management functions of municipalities. It is also consistent with ADB''s Midterm Review of Strategy 2020 as it contributes to the envisaged outcomes of environmentally sustainable development and the development of urban infrastructure, two of ADB''s five core areas of specialization. Lessons learned from past and ongoing urban projects and the country assistance program evaluation have been incorporated into the project design.


Mobility of residents in Thimphu Thromde (municipality) improved (Thimphu Structure Plan: 2002 -2027)


2 person-months (National)


One ICB works package and one NCB works package

Investment Description
  • Asian Development Bank (ADB)
Contact Information


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Responsible ADB Officer Mehta, Shinjini
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies Department of Engineering Services (DES)
Ministry of Works & Human Settlement
Drentoen Lam, Thimphu Bhutan